The Gross Domestic Product (GDP) one of
the primary indicators used to gauge the health of a country's economy. It
represents the total dollar value of all goods and services produced over a
specific period of time. Usually, GDP is expressed as a comparison to the
previous quarter or year. GDP is concerned with the areas in which income is
generated. It is the market value of all the output produced in a nation in one
year. GDP focuses on where the output is produced rather than who produced it.
GDP measures all, disregarding the firms' nationality.

GROSS DOMESTIC PRODUCT (%)

COUNTRIES

FY 08

FY 07

FY 06

Pakistan

5.80

6.38

6.92

India

8.7

9.21

9.74

China

9.27

11.40

11.10

Bangladesh

5.50

5.58

6.40

Indonesia

6.08

6.31

5.51

Malaysia

7.1

6.32

5.93

PAKISTAN

Pakistan's real GDP growth is likely to
remain in the range of 5.5% to 6.0% in the current fiscal year FY07-08. The
Pakistan's economy is witnessing some broad deterioration in key macroeconomic
indicators due to a combination of adverse domestic and international
developments, but it is important to note that the economy has fundamentally
gained flexibility as a result of structural reforms and liberalization measures
over the last 15 years. The real GDP growth in FY08 is expected to drop below
the 6% level for the first time in 5 years, annual inflation is on the edge to
returning to double digits, the fiscal deficit is forecast to rise
substantially, and the annual current account deficit, as a percentage of GDP,
is projected to be at an all-time high. It is seen that over the last 6 months,
expansionary fiscal policy has overshadowed and substantially weakened the
impact of sustained monetary tightening by the State Bank. This impact of the
heavy government borrowings has been particularly obvious in FY08, with the
borrowings rising to a record Rs 551.0 bn by May, FY08 almost doubling the total
outstanding stock of borrowings to Rs 940.6 bn.

INDIA

Indian economy, one of the world's
fastest growing economy is likely to grow at a moderate rate of 8.7% during the
current fiscal as against 9.6% during FY06-07, which was the highest in previous
18 years. However, India's industrial production growth slowed to just 3% in
March 2008, compared to a 14.8% growth in March 2007. The sectors that actually
showed negative growth in March this year included cotton textiles; textile
products including wearing apparel, wood and wood products, furniture and
fixtures; metal products and parts except machinery and equipment; and transport
equipment and parts. The negative growth in the metal products and parts except
machinery and equipment sector in March was to the tune of 25.8%.

CHINA

China has geared down its economic
growth to 9.27% this year after five consecutive years of double-digit GDP
growth. On the basis of improving the economic structure, productivity, energy
efficiency and environmental protection this is the fourth year that China has
fixed its GDP growth target at 9%, which shows the central government is ready
to maintain stable development. New governments in Chinese provinces and regions
were likely to seek faster economic growth and expand investment in their first
year in office, uncertainties and potential risks of the world economy could
also affect China . The impact of the U.S slowdown on China 's exports was still
unclear, and China 's economy faces more internal rather than external
challenges.

BANDLADESH

Bangladesh's economy is estimated to be
low this year as compare to last year. The growth in GDP was projected at 7% in
FY07. The downward revision of the GDP growth resulted from the twin floods and
cyclone. The production of crops was severely affected by the floods and the
cyclone. However, better outturn of potato and maize contributed to higher
growth in agriculture in FY07. Export earning has shown a positive growth since
the second quarter of the financial year while industries and services sectors
also attained higher growth. The contribution of agriculture to GDP has fallen
by 0.66% to 20.71% from 21.37%. The contribution of industries and services
sectors to GDP has increased by 0.34% and 0.36% in the outgoing financial year.
Industries account for 29.74% of GDP, up from 29.40% on the figure of the past
financial year, and services 49.58%, up by 49.22%. Therefore it is expected that
the economy could grow much higher than 6% if political situation remains
stable.

INDONESIA

The growth momentum in FY07 was at a
satisfying level, and it is expected that the expansion is to be further
accelerated to 6.4% in this year. The growth will again be largely supported by
domestic factors, as external demand will weaken with the US and Japanese
slowdown. The medium term outlook is broadly favorable, although growth will
have to accelerate even further to reverse the weakness in consumer sentiment,
as economic growth has failed to translate into substantial job creation.

MALAYSIA

Malaysia is confident of achieving high
GDP growth this year because of prudent economic management and without the need
for an economic stimulus plan. The country had achieved an encouraging growth of
7.1 % for the first quarter of 2008, surpassing the earlier target. In the first
quarter, all sectors have done well, including agriculture, construction,
manufacturing and services, to provide positive growth.

CONCLUSION:

Today, this region has become an
economic hub in this world; Countries like China and India have become the most
powerful emerging economies of the world. Pakistan , Malaysia , Bangladesh and
Indonesia are ideal places for the investors. Low cost land, cheap labour and
conducive economic environment gives this region a competitive advantage over
other regions as investors find themselves easy to invest because of lower cost
advantage.